(NewsNation) — Contrary to popular belief, millennials are better off financially than previous generations at the same age, according to a new study.
LendingTree found that millennials ages 26 to 41 had a median net worth of $84,941 in 2022 — more than Gen Xers ($78,333) and baby boomers ($58,101) at similar ages after adjusting for inflation.
The findings suggest millennials’ net worth is 8.4% higher than Gen Xers’ and 46.2% higher than baby boomers’ at the same age.
“The scars from the Great Recession and the pandemic have helped shape millennials’ views on money, forcing them to be more focused on their finances than other generations have had to be,” said Matt Schulz, LendingTree’s chief credit analyst.
Millennials have more money partially because they’re better educated than their predecessors, allowing for superior employment opportunities.
The report found that midpoint millennials — those born in the middle of the generation — earned a median cumulative income of $446,570 between 2014 and 2023. By comparison, midpoint baby boomers earned about 20% less, $362,330, between 1980 and 1989 after adjusting for inflation.
But it’s not all good news for millennials. One of the reasons their finances are in better shape is because they’re delaying major milestones like marriage and homeownership, the report noted. Millennials are also more likely to live at home than previous generations — a win for their wallets but potentially a negative for overall life satisfaction.
As for debt, LendingTree found millennials have nearly twice as much as baby boomers did at the same age but because their assets are worth significantly more, millennials come out ahead on net worth.
One important caveat: More millennials (12.7%) had a negative net worth compared to Gen Xers (11.5%) and baby boomers (11.9%) at similar ages. That finding is supported by other research pointing to a widening wealth gap within the millennial cohort.
What about the cost of housing?
The cost of housing is one area where millennials are worse off. That’s true for both renters and home buyers.
In 1990, midpoint baby boomers paid a median monthly rent of $1,174 adjusted for inflation. That’s $307 less than millennials’ current median rent of $1,481.
Homeownership is also more expensive today. A 20% down payment on a median home purchase in 2024 is $85,960 for midpoint millennials compared to $57,107 for baby boomers in 1990.
However, millennials have benefitted from lower mortgage rates, which were much higher, around 10%, in 1990.
Overall, millennials ages 25 to 34 spent an average of $15,429 on shelter in 2022 — 26% more than baby boomers did at the same age.
Are millennials really doing better financially?
Academics and media organizations have continued to debate whether younger generations are worse off than their parents — and that discussion is likely to continue.
On the whole, recent research suggests younger generations in the U.S. are doing better than many expected compared to a few years ago, and, inequality within, not between, generations is growing.
In August, the Wall Street Journal highlighted “the dramatic turnaround in millennials’ finances.” The report cited research showing the median household net worth of older millennials skyrocketed from $60,000 in 2019 to $130,000 in 2022.
“The turnaround has been so dramatic that millennials — mocked at times for being perpetually behind in building wealth, buying homes, getting married and having children — now find themselves ahead,” WSJ wrote.
Researchers at the University of Cambridge found that U.S. millennials were not “universally worse off” than baby boomers in a 2023 study but noted a “vast and increasing wealth gap.”
“The wealthiest millennials now have more than ever, while the poor are left further behind,” the study’s lead author Rob Gruijters said in a statement.
He added: “Individuals with typical working-class careers, like truck drivers or hairdressers, used to be able to buy a home and build a modest level of assets, but this is more difficult for the younger generation.”